![Do The Math Understanding Marketing ROI to Build & Measure A Marketing Plan Patricia McGuinness Principal, Shoestring Business Marketing [email_address]](https://image.slidesharecdn.com/dothemathpm2-12609885393512-phpapp01/85/Do-The-Math-Pm2-1-320.jpg)
![DEFINING MARKETING ,[object Object],www.shoestringbusinessmarketing.com](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommandé
Recommandé
Contenu connexe
Tendances
Tendances (20)
Similaire à Do The Math Pm2
Similaire à Do The Math Pm2 (20)
Do The Math Pm2
- 1. Do The Math Understanding Marketing ROI to Build & Measure A Marketing Plan Patricia McGuinness Principal, Shoestring Business Marketing [email_address]
- 27. Thank You Patricia McGuinness Principal, Shoestring Business Marketing [email_address]
Notes de l'éditeur
- SUSPECTS represent the entire universe of people who might possibly buy your product or service. PROSPECTS are a subset of suspects you have identified and have targeted for conversion into customers because they possess certain characteristics which are similar to those your current customers possess. The more specific and accurate your prospect definition is, the better able you are to create marketing efforts to address their specific needs. For example, if you’re an interior decorator, a suspect is anyone interested in home decorating. But you’ve narrowed that suspect group down to: Females 25 – 54 Income greater than $75,000 Home value of greater than $150,000 They may or may not be aware of your business offering, but they have never expressed an interest in your products or services. CONTACTS are prospects you have begun communicating with, but with whom you do not currently have a business relationship. Marketing efforts targeting this segment should a) increase awareness or b) create a desire for your product or service. LEADS are contacts who have actively responded to one or more of your marketing efforts by contacting you personally or by completing a lead generation form on your website. They are not current customers, although past customers are an excellent lead source. Marketing efforts targeting this segment should strive to demonstrate how your product or service solves their particular need. SALES, for the purposes of this whitepaper, are former prospects, contacts, or leads who have completed at least one purchase. Understanding where each of your prospects is within this funnel and creating marketing efforts designed to move them deeper into it, will allow you to establish reasonable marketing budgets with confidence and measure your marketing ROI with ease.
- SUSPECTS represent the entire universe of people who might possibly buy your product or service. PROSPECTS are a subset of suspects you have identified and have targeted for conversion into customers because they possess certain characteristics which are similar to those your current customers possess. The more specific and accurate your prospect definition is, the better able you are to create marketing efforts to address their specific needs. For example, if you’re an interior decorator, a suspect is anyone interested in home decorating. But you’ve narrowed that suspect group down to: Females 25 – 54 Income greater than $75,000 Home value of greater than $150,000 They may or may not be aware of your business offering, but they have never expressed an interest in your products or services. CONTACTS are prospects you have begun communicating with, but with whom you do not currently have a business relationship. Marketing efforts targeting this segment should a) increase awareness or b) create a desire for your product or service. LEADS are contacts who have actively responded to one or more of your marketing efforts by contacting you personally or by completing a lead generation form on your website. They are not current customers, although past customers are an excellent lead source. Marketing efforts targeting this segment should strive to demonstrate how your product or service solves their particular need. SALES, for the purposes of this whitepaper, are former prospects, contacts, or leads who have completed at least one purchase. Understanding where each of your prospects is within this funnel and creating marketing efforts designed to move them deeper into it, will allow you to establish reasonable marketing budgets with confidence and measure your marketing ROI with ease.
- Keep in mind that this number is meant to provide a starting point, an average, to help you make informed business decisions. Many of your customers will have been acquired at a much lower CPA; many will have been acquired at a much higher CPA.
- Keep in mind that this number is meant to provide a starting point, an average, to help you make informed business decisions. Many of your customers will have been acquired at a much lower CPA; many will have been acquired at a much higher CPA.
- Keep in mind that this number is meant to provide a starting point, an average, to help you make informed business decisions. Many of your customers will have been acquired at a much lower CPA; many will have been acquired at a much higher CPA.
- This $20 CPO-L is 100% higher than the benchmark CPL we established earlier of $10. If this was the only measurement you were using, you would be tempted to stop the campaign immediately, right?
- An apples-to-apples comparison of this campaign against the benchmark numbers yields some interesting information. The CPL and CPA are significantly higher than the benchmarks of $10 and $100, respectively, but the LTSR is slightly better than the average. Bingo! You’ve suddenly got solid information you can use to evaluate this campaign. Completing this exercise for each of your other marketing efforts will provide you with all of the information you need to ensure that sound business decisions are in order. And isn’t that what you were looking for?
- There’s no clear-cut answer here. It’s really a call only you can make. Marketing is a process of trial and error, after all. Part art and part science. But now you’ve got some simple tools to help you put both the art and the science on equal footing. Continue using these KPIs and you’ll be well on your way to making informed marketing decisions and determining your ROI with a confidence you’ve never felt before!